Consumer watchdog may be too weak, advocates say

Posted by & filed under Part 6 Managing Financial Resources.

Description:  Far-reaching legislation aimed at overhauling the nation’s financial-services regulatory system is moving forward in Congress, but advocates say some of the proposed consumer protections are too weak.

Source: Marketwatch.com
 
Date: 03/25/2010

Link: http://www.marketwatch.com/story/will-bank-reform-proposals-protect-consumers-2010-03-25?siteid=nwtwk

Questions for discussion:

  • Do you believe consumers need a high level of legislation to protect them from the financial services industry?
  • What sorts of problems do you attribute to poor consumer protection laws?
  • Why do you think some people might feel differently about consumer protection legislation for financial services in comparison to other services and products in the marketplace?

U.S. Economy: Profit Surge May Help Broaden Expansion

Posted by & filed under Part 6 Managing Financial Resources.

Description: The fastest pace of economic growth in six years during the final three months of 2009 fueled a surge in corporate profits that may set the stage for job gains and a broadening of the U.S. recovery.

Source: Bloomberg.com

Date: 03/26/2010

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aorqXG5sfGeY

Questions for discussion:

  • Summarize the reasons given for economic and stock market optimism?
  • Do you agree with these opinions favoring economic improvement?
  • How do you expect the financial markets to perform in the next 12 months?

F.D.A. Says Millions Got Unapproved Heart Pills

Posted by & filed under Part 1 Business in a Global Environment.

Description: Doctors in the United States wrote more than four million prescriptions last year for nitroglycerin tablets, heart drugs placed under the tongue to reduce the chest pain angina or to stop a heart attack.

Source: NYTimes.com

Date: 03/26/2010

Link: http://www.nytimes.com/2010/03/27/business/27nitro.html?ref=business

Questions for discussion:

  • Why do you think the F.D.A. is only now acting on this matter?
  • Do you believe that pharmacies that sell these unapproved drugs are unethical?
  • Is this a case of a monopoly (Pfizer) trying to control the marketplace?

Why a $14/hour employee costs $20

Posted by & filed under Part 2 Starting and Growing Your Business, Part 6 Managing Financial Resources.

Description: You probably cost your boss a lot more than you think you do.

Source:  CNNMoney.com

Date: 03/26/2010

Link: http://money.cnn.com/2010/03/26/smallbusiness/employee_costs/index.htm

Questions for discussion:

  • In general, do you think these taxes (costs) are fair to employers and employees?
  • Why would any exemptions for employment taxes be considered an unfair competitive subsidy by other businesses who must continue to pay?
  • Is there a better way to pay for entitlement programs delivered by governments and still help stimulate hiring?

Digits: Who Stands to Win if Google Exits China?

Posted by & filed under Part 1 Business in a Global Environment, Part 2 Starting and Growing Your Business, Part 6 Managing Financial Resources.

Description:  Hopes are fading that Google will be able to reach an agreement with China to remain in business there. With an exit by Google, a big chunk of the search market would be up for grabs, Ben Worthen reports on Digits with Stacey Delo, Eric Savitz and Marcelo Prince.

Source: Marketwatch.com – video report
 
Date: 03/15/2010

Link: http://www.marketwatch.com/video/asset/digits-who-stands-to-win-if-google-exits-china/B8C6A990-92FE-477E-B3B5-FE8DD3378029

Questions for discussion:

  • Summarize the reasons for Baidu stock increases.
  • Do you think Google is right or wrong to leave China?
  • Is there another way for investors to play the Chinese internet market if Google pulls out?
  • If Microsoft agrees to the play by the Chinese government rules and replaces Google in the marketplace there, do you believe that decision would hurt the Microsoft brand image elsewhere?

Palm shares may hit $0: Analysts

Posted by & filed under Part 6 Managing Financial Resources.

Description:  Palm’s future already looked bleak. But after reporting worse than expected results for the third quarter Thursday, some analysts think the company’s stock is now essentially worthless.

Source: CNNMoney.com
 
Date: 03/19/2010

Link: http://money.cnn.com/2010/03/19/technology/palm_target_price_zero/index.htm

Questions for discussion:

  • Summarize the reasons for Palm’s demise.
  • Do believe there is hope for the stock?

Nike jumps to record high as results promise strong demand

Posted by & filed under Part 1 Business in a Global Environment, Part 4: Marketing Management, Part 6 Managing Financial Resources.

Description:  Shares of Nike Inc. jumped to an all-time high Thursday after the No. 1 athletic-shoe company reported unexpectedly strong profits and product orders for its fiscal third quarter, driven by improved demand in Western Europe and China.

Source: Marketwatch.com
 
Date: 03/18/2010

Link: http://www.marketwatch.com/story/nike-jumps-after-results-promise-continued-demand-2010-03-18

Questions for discussion:

  • Summarize the reasons for the growth in Nike stock value?
  • Explain the reasons for the growth in sales of their products.
  • How important is the Nike brand in this market?
  • How do global demographic and economic trends affect the firm?

At Lehman, Watchdogs Saw It All

Posted by & filed under Part 1 Business in a Global Environment, Part 6 Managing Financial Resources.

Description: Almost two years ago to the day, a team of officials from the Securities and Exchange Commission and the Federal Reserve Bank of New York quietly moved into the headquarters of Lehman Brothers. They were provided desks, phones, computers — and access to all of Lehman’s books and records. At any given moment, there were as many as a dozen government officials buzzing around Lehman’s offices.

Source: NYTimes.com

Date: 03/15/2010

Link: http://www.nytimes.com/2010/03/16/business/16sorkin.html

Questions for discussion:

  • Summarize the explanation given for the concern over the way Lehman Brothers was being managed.
  • Do you consider any behaviors unethical or illegal?
  • Do you hold the SEC responsible for anything?

Avoid Negative-Net-Worth Stocks Like the Plague: John Dorfman

Posted by & filed under Part 6 Managing Financial Resources.

Description: I rarely buy a stock whose debt is greater than stockholders’ equity, or corporate net worth per share. In effect, that means I won’t give a second look to about one third of U.S. stocks.

Source: Bloomberg.com

Date: 03/15/2010

Link: http://www.bloomberg.com/apps/news?pid=20601039&sid=aReZz0vi1B5U

Questions for discussion:

  • In general, do you agree with this analysis and strategy for investing in stocks?
  • Could there be exceptions to the rule?
  • Why do you suppose that stocks that fail the Dorfman rule are still so valued by the investors?

Profitable do-good biz

Posted by & filed under Part 1 Business in a Global Environment.

Description:  B Corporations, a new type of corporate structure, use the power of business to solve social and environmental problems as well as make money.

Source: CNNMoney.com – video report
 
Date: 03/12/2010

Link: http://money.cnn.com/video/news/2010/03/08/n_cc_bcorps.cnnmoney/

Questions for discussion:

  • Summarize the arguments presented favouring the adoption of the B-Corp code of behavior.
  • What benefits are derived by the company and employees if this approach is adopted?
  • Are there any marketing benefits that can be expected?
  • Is there any down-side to adopting this code of behavior?